Embed Size (px)
Citation preview
1
Specific Instance
OECD Guidelines for Multinational Enterprises
POSCO
Concerning POSCO’s human rights and environmental breaches in relation to the
proposed development of an iron ore reserves, an integrated steelworks plant and
associated infrastructure in the State of Odisha, India
Complainants
Lok Shakti Abhiyan (India)
Korean Trans National Corporations Watch (South Korea)
Fair Green and Global Alliance (Netherlands)
Forum for Environment and Development (Norway)
Presented to:
Korean OECD National Contact Point
Ministry of Knowledge Economy
Foreign Investment Policy Division
1 Jungang-dong, Gwacheon-si, Gyeonggi-do
Tel: +82-2-2110-5356
Fax: +82-2-504-4816
www.mke.go.kr
Dutch OECD National Contact Point
Trade Policy and Globalisation Division
Ministry of Economic Affairs, Agriculture and Innovation
Alp. N/442, P.O. Box 20102
NL-2500 EC The Hague
Tel: +31-70-379-8617
Fax: +31-70-379-7221
www.oesorichtlijnen.nl
Norwegian OECD National Contact Point
Ministry of Foreign Affairs
P.O. Box 8114 – DEP
N-0032 OSLO
Tel: +47-22-24-4599 and +47-22-24-4237
[email protected] and [email protected]
www.responsiblebusiness.no
2
Table of Contents
Interested parties ................................................................................................................................... 3
1. Lok Shakti Abhiyan ...................................................................................................................... 3
2. Korean Trans National Corporations Watch (KTNC Watch) ....................................................... 3
3. Fair Green and Global Alliance ................................................................................................... 3
4. Forum for Environment and Development | Forum for utvikling og miljø (ForUM) ................. 4
Entities named in this specific instance ................................................................................................. 5
1. POSCO (South Korea) .................................................................................................................. 5
2. ABP/APG...................................................................................................................................... 5
3. The Government Pension Fund - Global (Norway) ..................................................................... 6
Introduction ........................................................................................................................................... 7
What is at stake...................................................................................................................................... 7
Latest developments .............................................................................................................................. 8
key Background information ................................................................................................................. 9
1. About the “Saxena” and “Meena Gupta” Committees .............................................................. 9
2. Land acquisition and Scheduled Tribes or Other Traditional Forest Dwellers ......................... 10
Breaches to the Guidelines .................................................................................................................. 11
1. Failure to seek to prevent or mitigage adverse impacts directly linked to their operations and
exercise their leverage to protect human rights ............................................................................. 11
2. Failure to conduct comprehensive human rights due diligence, including consulting with and
preventing harm to affected communities ...................................................................................... 15
3. Failure to carry out environmental due diligence, including consulting with and informing
affected communities ...................................................................................................................... 16
Other proceedings ............................................................................................................................... 20
Complainants’ requests of NCPs .......................................................................................................... 22
Videos ................................................................................................................................................... 25
Acronyms ............................................................................................................................................. 26
Endnotes .............................................................................................................................................. 27
3
INTERESTED PARTIES
1. Lok Shakti Abhiyan
Lok Shakti Abhiyan is an alliance of progressive people’s organisations and movements, who
while retaining their autonomous identities, are working together to bring the struggle for
primacy of rights of communities over natural resources, conservation and governance,
decentralised democratic development and towards a just, sustainable and egalitarian society in
the true spirit of globalism.
Prafulla Samantara
Lohiya Academy, A/3, Unit – 9
Bhubaneshwar, Orissa – 751022
India
Cell: +91-94372-59005
2. Korean Trans National Corporations Watch (KTNC Watch)
KTNC Watch is a network of NGOs1 based in Korea working in various fields ranging from human
rights and corporate social responsibility to energy/climate policy and labour rights. The
network was formed with the view to bring together various expertise and experience to
monitor transnational corporations registered in Korea and address issues arising from their
operations.
KTNC Watch
2nd Fl., 184-2 Pirun-dong
Jongno-gu, Seoul 110-044
South Korea
Tel: + 82-2-736-5808/09
Fax: + 82-2-736-5810
Contact: [email protected]
3. Fair Green and Global Alliance
Fair Green Global Alliance is an alliance of Dutch civil society organisations.2 The overall
objective of the FGG alliance is to contribute to poverty reduction and socially just and
environmentally sustainable development by enhancing the capacity of civil societies in the
South.
Fair Green Global Alliance
Sarphatistraat 30
1018 GL Amsterdam
The Netherlands
+ 31-20-639-1291
Contact: [email protected]
4
4. Forum for Environment and Development | Forum for utvikling og miljø
(ForUM)
ForUM is a think tank and national and international contact point for the coordination of policy
initiatives and recommendations. These are anchored in a community of 54 member
organisations in Norway and the viewpoints of our international partners and those in the
Global South.
ForUM
Storgata 11
0155 Oslo
Norway
Tel: +47-23-01-0300
Fax: +47-23-01-0303
http://www.forumfor.no/
Contact: [email protected]
5
ENTITIES NAMED IN THIS SPECIFIC INSTANCE
1. POSCO (South Korea)
POSCO (formerly Pohang Iron and Steel Company) is a South Korea-based company engaged in
the manufacture of steel products. It is the fourth largest steel company in the world.
POSCO-India Pvt. Limited is a wholly-owned subsidiary of POSCO.
Jun Yang Jung, Chairman & CEO
POSCO
1, Goedong-Dong
Nam-Gu
POHANG, 790300
South Korea
Tel: +82-54-220-0114
Fax: +82-54-220-6000
Press Center: [email protected]
www.posco.com and
http://www.posco-india.com/
2. ABP/APG
Stichting Pensioenfonds ABP (National Civil Pension Fund) is the pension fund for employees in
the government, public and education sectors in the Netherlands.
Henk Brouwer, Chairman
ABP
Head office Heerlen
Oude Lindestraat 70
6411 EJ Heerlen
Netherlands
Tel: +31-45-579-9111
http://www.abp.nl/
APG carries out the administration of pensions for approximately 2.6 million Dutch people,
including ABP’s assets.
Drs. Dick Sluimers, CEO
APG
Oude Lindestraat 70
6411 EJ Heerlen
Netherlands
Tel: +31-45-579-9222
http://www.apg.nl/
6
3. The Government Pension Fund - Global (Norway)
The purpose of the Government Pension Fund - Global (GPFG) is to facilitate government
savings necessary to meet the rapid rise in public pension expenditures in the coming years, and
to support a long-term management of petroleum revenues in Norway.
Sigbjørn Johnsen, Minister of Finance
Ministry of Finance
P.O. Box 8008 Dep
NO-0030 Oslo
Norway
Tel: +47-22-24-9090
Fax: +47-22-24-9514
http://www.regjeringen.no/en/dep/fin.html
7
INTRODUCTION
We, Lok Shakti Abhiyan, KTNC Watch, Fair Green and Global Alliance and ForUM (Complainants),
hereby file a Specific Instance concerning POSCO’s breaches to the OECD Guidelines for
Multinational Enterprises (Guidelines) in relation to the proposed development of iron ore reserves,
an integrated steelworks plant and associated infrastructure in the State of Odisha, India.
POSCO has not carried out comprehensive human rights and environmental due diligence, and it
has not engaged in meaningful consultation with all affected communities to identify the full scope
and severity of potential human rights, social and environmental impacts. POSCO’s failure to
conduct due diligence will mean the company will be incapable of preventing or mitigating
significant adverse impacts on thousands of people and the environment should its proposed
project proceed.
Specifically, POSCO is alleged to have breached the Guidelines by failing to:
1) seek to prevent and mitigate human rights abuses directly linked to their operations and
exercise their leverage to protect human rights;
2) conduct comprehensive human rights due diligence, including consulting with and
preventing harm to affected communities; and
3) carry out comprehensive environmental due diligence for all aspects of its proposed project,
including consulting with and informing affected communities about the project’s actual and
potential impacts.
The Dutch pension fund ABP/APG and Norwegian Government Pension Fund – Global (GPFG)
should seek to prevent or mitigate the real and potential adverse impacts directly linked to their
operations through their financial relationships with POSCO.
WHAT IS AT STAKE
POSCO and its wholly-owned subsidiary POSCO India Pvt. Limited are seeking to extract and process
an estimated 600 million tons of iron ore reserves in the State of Odisha3, India. POSCO’s original
plan involves building a 12 million tons per annum (MTPA) integrated steelworks plant in the
Jagatsinghpur District (10 km south of Paradip Port). The integrated steel plant will include a
captive power plant4 and a captive minor port5. POSCO also plans to develop related infrastructure
(such as roads and railways and possibly conveyor belts in lieu of some roads) to transport 20 MTPA
iron ore from the mines to the plant.6 An integrated township is also planned.7
POSCO claims the project is “expected to bring about meaningful growth and investment in India,
and would also further downstream industries like automobile, shipping and construction”. POSCO
also claims “India will derive significant benefits from the POSCO India project, as it will create an
estimated 48,000 direct and indirect jobs in the region. In addition, the construction phase will
create about 467,000 man years of employment for the local population”.8 However, there is little
possibility the purported job creation will benefit the thousands of local residents who do not have
the skills to work for a steel plant and offspring industries that will allegedly be created.
8
The project originally involved the Odisha State Government acquiring 4,004 acres of land, including
438 acres of private land. In this regard, according to 2001 census data, the acquisition of 438 acres
of private land would result in 3,578 families losing their land through forced eviction, either
entirely or partially, and 718 families losing their homes.
However, it is important to understand that the State Government claims the 4,004 acres slated for
POSCO’s project is government-owned, but the communities have lived and subsisted on these
lands for generations, including individuals who have special legal protections under the Scheduled
Tribes or Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (hereafter
“Forest Rights Act 2006” or “FRA”)9.
Indeed, the Gram Panchayats of Dhinkia, Nuagaon and Gadakujang are sited primarily in the
proposed project site. These Gram Panchayats include 11 villages. As per the 2001 Census, there
were 3,350 households with a total population of approximately 22,000 people living in these three
Gram Panchayats. However, PPSS estimates the total number of households that will be affected
today is about 4,000.
In addition, approximately 75% of the total land allotted for the proposed project is forest land.
These communities depend on the surrounding forest land and coastal ecosystem for food such as
rice, vegetables, fruits and fish, but also for the cultivation of cash crop such as betel vine and
cashew. Their farming and fishing practices have allowed many community members to maintain a
peaceful and sustainable way of living for generations.
LATEST DEVELOPMENTS
• On 30 March 2012, the National Green Tribunal (NGT) suspended POSCO’s final 2011
environmental clearance.10
The NGT ordered the Ministry of Environment and Forests (MoEF)
to carry out a “fresh review” by a newly-formed committee of “subject matter specialists for
better appreciation of environmental issues”. POSCO, for its part, “shall be asked to furnish
relevant details required for the said review by the newly constituted committee to recommend
specific conditions to be attached/revised in the [environmental clearances] granted by
MOEF”.11 (Appendix A – See Pgs. 31-32, Paras. 8.1 – 8.9)
• In July 2012, POSCO “submitted a revised proposal to the [Odisha State Government] seeking
transfer of 2,700 acre land in its favour for establishing a 8 MTPA factory” instead of the original
4,004 acres of land for a 12 MTPA power plant.12 POSCO has stated “it will expand the capacity
to [the] envisaged 12 [MTPA] when it is provided the rest [of the] land”.13
• Also in July 2012, the Odisha State Government announced it “has decided against acquiring
about 438 acres of private land for the 12 [MTPA] steel plant proposed to be set up by [POSCO]
near Paradip”.14
• On 22 August 2012, the MoEF review committee established in response to the NGT’s order
visited the Noliasahi and Nuagaon villages.15
According to local community activists, no prior
notice of the committee’s visit was provided, and in fact they only learned of the visit after it
was reported in the media. According to media reports, the committee members also met with
state officials.
9
• As of 6 September 2012, the Odisha State Government is reportedly set to acquire the final
700 acres of government land needed for an 8 MTPA factory. According to media reports, “The
land will be given to the South Korean steelmaker in October and construction could begin by
the end of the year”.16
• If and when POSCO obtains a new environmental clearance from the MoEF per the NGT’s order,
the Odisha State Government is set to approve a new Memorandum of Understanding (MoU)
with POSCO (the original 2005 MoU expired in June 2011).
It is our understanding POSCO actually intends to commence construction in October 2012. We
therefore request urgent attention is given to the issues raised in this Specific Instance.
KEY BACKGROUND INFORMATION
1. About the “Saxena” and “Meena Gupta” Committees
Two government-appointed committees – commonly referred to as the “Saxena Committee” and
“Meena Gupta Committee” – conducted field investigations of the POSCO project in 2010.
The Saxena Committee was commissioned by the MoEF and the Ministry of Tribal Affairs (MoTA) to
examine the wider implementation of the FRA and other issues in the State of Odisha. Three
members of the Saxena Committee issued a scathing report in August 2010 on the FRA
implementation relative to the POSCO project. Please see Appendix B, “MoEF/MoTA Committee on
Forest Rights Act: Report of visit to Jagatsinghpur (site of proposed POSCO project), Orissa, 23-24
July 2010”.
In response to the Saxena Committee’s report, the MoEF appointed a four-member committee led
by former State Environment Secretary Meena Gupta to “[E]nquire into the status of
implementation of FRA in and around forest land of the POSCO project and rehabilitation and
resettlement provisions. Subsequently, the committee was asked to review the environment,
[Coastal Regulation Zone] and other clearances also given by MoEF and state and local
authorities”.17
While the four members agreed the FRA had not been implemented, they could not come to a joint
conclusion on all the issues they were commissioned to investigate. Therefore, two reports were
issued: one by Meena Gupta and a second by a majority of the members, Dr. Urmila Pingle,
Dr. Devendra, and Pandey, Dr. V. Suresh (hereafter referred to as the “Meena Gupta Majority
Report”). Please see Appendix C, the Executive Summary for the “Report of the Committee
Constituted to investigate into the proposal submitted by POSCO India Pvt. Limited for
establishment of an Integrated Steel Plant and Captive Port in Jagatsinghpur District, Orissa,
October 18, 2010”.
Many of the allegations contained in this Specific Instance are corroborated by the findings of these
committees.
10
2. Land acquisition and Scheduled Tribes or Other Traditional Forest Dwellers
The Odisha State Government has sought to acquire the land POSCO needs for its project under the
Land Acquisition Act 1894, which was created with the expressed purpose of facilitating the
government’s acquisition of privately held land for public purposes. However, when Scheduled
Tribes or Other Traditional Forest Dwellers (OTFDs) reside in the area, the Forest Rights Act 2006
applies.
Under the FRA, OTFDs is defined as any member or community who has for at least three
generations prior to the 13 December 2005 primarily resided in or who depends on the forest or
forest land for bona fide livelihood needs. One generation refers to a 25-year period. Similarly,
Scheduled Tribes refers to indigenous people who are specially protected by the Indian
Constitution. The FRA requires the free, prior and informed consent of the appointed village
counsel before land can be acquired from these protected classes like Scheduled Tribes and OTFDs.
Two issues have been raised with regard to the FRA. The first issue is whether Scheduled Tribes or
OTFDs, who under Indian law hold forest rights, reside in the project area. The second issue is
whether their free, prior and informed consent was obtained in a legally valid manner.
In August 2010, three members of the MoEF/MoTA Committee (also referred to as the “Saxena
Committee”) issued a highly critical report on the implementation of the FRA with respect to
POSCO’s proposed project (Appendix B). The Committee concluded, among other things (emphasis
below was not added):
1. There are Other Traditional Forest Dwellers (OTFDs) in the area, contrary to what the district
administration is saying. Both documentary and oral evidence exists to this effect. A sample of
the documentary evidence has been attached with the letter sent by the Committee to the
Minister for Environment and Forests, on 3 August 2010.
2. The FRA process has not been completed, in fact it has not proceeded beyond the initial
stages, for various reasons. It is therefore incorrect and misleading for the district
administration to conclude that there are no OTFDs “in cultivating possession of the land since
3 generations” in the area. Firstly, this cannot be concluded without having gone through the
process of claims; secondly, the FRA provides for dependence on forest land also as a criteria for
eligibility, not only “cultivation possession of land”.
3. Some palli sabhas have given resolutions refusing to consent to diversion of forest land on
which they are dependent. These palli sabhas were convened by the district administration
itself, after receiving instructions relating to the MoEF circular of July 2009, which indicates that
the administration was aware of the possible presence of forest rights claimants in the area. (It
is interesting that this was done after the District Collector had given the opinion that there are
no STs and OTFDs in the project area). To the best of our knowledge these palli sabha
resolutions have not been sent by the state government to the MoEF, which is tantamount to
deliberate withholding of relevant information/documents. Only the palli sabha resolutions
setting up FRCs in March 2008, have been sent to MoEF (which MoEF has asked the state
government to translate, in April 2010).18
The Meena Gupta Majority Report also states that not only OTFDs, but also 21 adults belonging to
Scheduled Tribes reside in the project area and the process procedures to obtain their consent
were not implemented properly due to non-cooperation and negligence on the part of the State
11
Government of Orissa. The majority members concluded the final forest clearance should be
revoked due to illegalities and that the Odisha State Government “...must initiate implementation
of the FRA process afresh in the project area in a transparent and democratic way and ensure
settling of individual and community rights as per the provisions of the Forest Right Act and Rules
made therein”.19
However, the Minister of Environment and Forests did not cancel the permission for forest land
diversion, but rather requested the Odisha State Government “provide a categorical assurance”
that it did not violate FRA in requesting the permission for the diversion of 1,253 hectares. The
Minister’s request came as surprise given the fact that from the very beginning it had been the
position of the Odisha State Government that no Scheduled Tribes or OTFDs resided in the
proposed project area.
In November 2010, the MoEF’s Forest Advisory Committee recommended “temporary withdrawal”
of the forest clearance on grounds of violation of the FRA. However, ignoring the findings and
recommendations of all three committees, the Odisha State Government issued final clearance
(meaning the FRA had been properly implemented) in January 2011. In response two Public
Interest Litigation petitions were filed with the Orissa High Court.
On 9 September 2011 the Orissa High Court refused to pass an interim stay with regard to
acquisition of forest land by the Odisha State Government. However it stayed the acquisition of
private land. In other words, the status quo with regard to the State Government’s acquisition of
private land for the project was maintained.
As per media reports, in July 2012, the Odisha State Government “has decided against acquiring
about 438 acres of private land for the 12-[MTPA] steel plant proposed to be set up by [POSCO]
near Paradip”.20
However, the Odisha State Government’s decision to no longer acquire private land does not
resolve the FRA issue. Despite the findings of the Saxena and Meena Gupta Committees, the
Odisha State Government still has not acknowledged the existence of Scheduled Tribes or OTFDs
in the area, and therefore has not complied with the statutory rights of these groups under the
FRA. The original writ petition regarding the Odisha State Governments’ failure to implement the
FRA is pending.
BREACHES TO THE GUIDELINES
1. Failure to seek to prevent or mitigage adverse impacts directly linked to their
operations and exercise their leverage to protect human rights
For the past seven years, efforts by the Odisha State Government to acquire land for POSCO’s
project have been opposed by local communities. Their opposition, expressed through peaceful
demonstrations, has been met with violence and acts of intimidation. While not an exhaustive list
of incidents, examples of state-sponsored human rights abuses include the following:
• On 26 September 2011, about 400 armed personnel entered Govindpur village where the
POSCO Pratirodh Sangram Samiti, (PPSS - Committee for resistance against POSCO) campaign is
12
located in order to build a coastal road along the beach from the Indian Oil Refinery complex to
the port for POSCO. The armed personnel attacked the villagers with rod, sticks and hand-
bombs. The police took no action during this incident. More than 30 villagers, including
6 women, were injured. Two villagers remain in critical condition. The injured could not seek
treatment at the nearest hospital, because they feared arrest as the police have registered false
cases against some them.
• Following a July 2011 visit, the National Commission for Protection of Child Rights
recommended the Odisha State Government withdraw its police presence at schools and made
an appeal to ensure children’s right to education and well-being are protected. (Appendix D)
• On 2 June 2010, protesters were attacked by the police who charged and fired on them during a
demonstration opposing a “socioeconomic survey” in the Village of Nuagaon, because they
feared the survey was a precursor to land acquisition. Ten people were injured and two
protesters were arrested. One of the arrested, Ajaya Swain, was beaten and tortured in the
police station.
• On 15 May 2010, Odisha state police brutally attacked local people who were guarding an
entrance point to the proposed project site by using tear gas, rubber bullets and police clubs.
Several family residences were burned and over 100 local people were injured as a result.
• On 20 June 2008, a group of people at Govindpur were attacked with bombs. Tapan (Dula)
Mandal was killed on the spot and several others injured. POSCO did not condemn the death of
Dula Mandal.
• On 29 November 2007, the protest dharna (peaceful protest) at Balitutha was attacked by
approximately 500 goondas armed with bombs, swords and other deadly weapons. Eight
people were badly injured, around 50 sustained lesser injuries, more than 50 motorcycles were
damaged and the dharna tent was burned. The police, who were stationed half a kilometre
away, stood by during the attack. After the dharna participants fled, the police used the
opportunity to move into Balitutha, Gadkujang and Nuagaon, from which they had been
previously barred from entering by the people’s protests.
• On 27 November 2007, 55 people walking to a protest dharna at Balitutha were attacked by a
larger group with sickles and other weapons. Six people were seriously injured, four of whom
were hospitalised.
• To date, the Odisha State Government has registered more than 200 criminal cases against the
villagers and issued 1,500 warrants, 340 of which are women. Two individuals, who are
undertrial prisoners, remain incarcerated.
• Using the threat of arrest, the police continue to impose a de facto blockade on the area and
particularly on the residents of Dhinkia Gram Panchayat. Anyone who leaves, including those in
need of medical treatment or those who go to the market, is at risk of arrest. Schools in the
area are repeatedly closed and used as police camps. The people have suffered repeated and
prolonged hardship as a result.
13
• Abhay Sahoo, a reputed human rights defender and Chairperson of the PPSS has been targeted
by the Odisha State Government in order to suppress opposition to the project. More than
55 false cases have been brought against him, including the following:
- Mr. Sahoo was arrested in October 2008 when he left Dhinkia village for ongoing
medical treatment. Mr. Sahoo is an acute diabetic and has high blood pressure. Only
after Mr. Sahoo’s health further declined did the authorities move him to a hospital on
3 December 2008. While he was in hospital, the police’s inhumane treatment included
requiring him to be on the floor and handcuffed in chains.
- Mr. Sahoo was again implicated in another false case leading to his incarceration from
25 November 2011 to 14 March 2012. (For more information, please see Appendix E,
People’s Union for Civil Liberties’ press release concerning the arrest and treatment of
Mr. Sahoo. Also see Appendix F, “Attack on people of Dinkia, Gadakunjanga & Nuagaon
(anti-POSCO campaigners) by goons, supposedly hired by POSCO contractors on 26th
Sep 2011”.)
In a written response to the Business & Human Rights Resource Centre, POSCO stated:
As per Indian Constitution, law and order is a State subject. It is the prerogative of
administration to use police based on threat perception. Private companies like POSCO would
have no role in this. But as far as we know, there has been no use of force by Govt anywhere
during land acquisition process. On the contrary, PPSS has been using violent means to
terrorise people into submission and some of those daring to oppose have been externed. Any
inference on intimidation is without any basis. (Appendix G)
The above response demonstrates POSCO denies any correlation between state-sponsored
human rights abuses and the land acquisition process. Consequently, POSCO has not sought to
use its leverage to affect change in abusive state practices to acquire land that, should its project
proceed, will ultimately benefit the company.
While most of the incidents cited above took place prior to the 2011 revision of the Guidelines,
we are calling attention to the fact that POSCO’s denials and continued silence with respect to
human rights abuses during the land acquisition process represent a breach to the following
human rights-related sections in the Guidelines:
14
Failure to respect human rights
• Human Rights Chapter IV, Paragraph 1: Enterprises should respect human rights, which means
they should avoid infringing on the human rights of others and should address adverse human
rights impacts with which they are involved.
Relevant Commentary: The chapeau and the first paragraph recognise that States have the
duty to protect human rights, and that enterprises, regardless of their size, sector,
operational context, ownership and structure, should respect human rights wherever they
operate. Respect for human rights is the global standard of expected conduct for
enterprises independently of States’ abilities and/or willingness to fulfil their human rights
obligations, and does not diminish those obligations.21
A State’s failure either to enforce relevant domestic laws, or to implement international
human rights obligations or the fact that it may act contrary to such laws or international
obligations does not diminish the expectation that enterprises respect human rights. In
countries where domestic laws and regulations conflict with internationally recognised
human rights, enterprises should seek ways to honour them to the fullest extent which does
not place them in violation of domestic law, consistent with paragraph 2 of the Chapter on
Concepts and Principles.22
Enterprises can have an impact on virtually the entire spectrum of internationally
recognised human rights. In practice, some human rights may be at greater risk than others
in particular industries or contexts, and therefore will be the focus of heightened attention.
However, situations may change, so all rights should be the subject of periodic review.
Depending on circumstances, enterprises may need to consider additional standards. For
instance, enterprises should respect the human rights of individuals belonging to specific
groups or populations that require particular attention, where they may have adverse
human rights impacts on them. In this connection, United Nations instruments have
elaborated further on the rights of indigenous peoples; persons belonging to national or
ethnic, religious and linguistic minorities; women; children; persons with disabilities; and
migrant workers and their families...23
Failure to use leverage to affect a changes in state practices that violate human rights
• Human Rights Chapter IV, Paragraph 2: Within the context of their own activities, avoid causing
or contributing to adverse human rights impacts and address such impacts when they occur.
Relevant Commentary: Paragraph 2 recommends that enterprises avoid causing or
contributing to adverse human rights impacts through their own activities and address such
impacts when they occur. ‘Activities’ can include both actions and omissions. Where an
enterprise causes or may cause an adverse human rights impact, it should take the
necessary steps to cease or prevent the impact. Where an enterprise contributes or may
contribute to such an impact, it should take the necessary steps to cease or prevent its
contribution and use its leverage to mitigate any remaining impact to the greatest extent
possible. Leverage is considered to exist where the enterprise has the ability to effect
change in the practices of an entity that cause adverse human rights impacts.24
15
2. Failure to conduct comprehensive human rights due diligence, including
consulting with and preventing harm to affected communities
POSCO has not carried out comprehensive human rights due diligence (in violation of General
Policies Chapter II, Paragraph A.10 and Human Rights Chapter IV, Paragraph 5). This clear breach of
the Guidelines includes the company’s failure to engage in meaningful consultation with all affected
stakeholders (in violation of Genera Policies Chapter II, Paragraph A.14) in order to identify the full
scope and severity of potential human rights impacts (in violation of General Policies Chapter II,
Paragraph A.14 and Human Rights Chapter IV, Paragraph 2). Indeed, we cannot find any evidence
of sincere efforts to listen and reflect the opinions of affected communities at any stage of the
project planning process.
Rather than conducting appropriate and thorough human rights due diligence, it is our
understanding POSCO is proceeding on the basis of a socio-economic survey report conducted by
Xavier Institute of Management Bhubaneswar (XIMB) that greatly under-estimates the number of
people who will have their livelihoods and human rights severely impacted. This includes persons
who have special protections as members of Scheduled Tribes or OTFDs under the FRA, which the
Odisha State Government has denied their existence (Please see “Background: Land acquisition and
Scheduled Tribes or Other Traditional Forest Dwellers” above).
Given the presence of Scheduled Tribes, the United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP) and ILO 169 are of particular relevance and should therefore be respected by
POSCO. In this regard, we would like to draw the attention to statements from other NCPs, such as
the Norwegian NCP in the Intex and Cermaq cases and the British in the Vedanta case on how these
rights are linked to the OECD Guidelines.
We therefore allege POSCO has breached the following Guidelines:
Failure to conduct comprehensive human rights due diligence
• General Policies Chapter II, Paragraph A.10: Enterprises should carry out risk-based due
diligence, for example by incorporating it into their enterprise risk management systems, to
identify, prevent and mitigate actual and potential adverse impacts as described in paragraphs
11 and 12, and account for how these impacts are addressed. The nature and extent of due
diligence depend on the circumstances of a particular situation.
Relevant Commentary: Due diligence is understood as the process through which
enterprises can identify, prevent, mitigate and account for how they address their actual
and potential adverse impacts as an integral part of business decision-making and risk
management systems. Due diligence can be included within broader enterprise risk
management systems, provided that it goes beyond simply identifying and managing
material risks to the enterprise itself, to include the risks of adverse impacts related to
matters covered by the Guidelines...25
• Human Rights Chapter IV, Paragraph 5: Enterprises should carry out human rights due diligence
as appropriate to their size, the nature and context of operations and the severity of the risks of
adverse human rights impacts.
Relevant Commentary: Paragraph 5 recommends that enterprises carry out human rights
16
due diligence. The process entails assessing actual and potential human rights impacts,
integrating and acting upon the findings, tracking responses as well as communicating how
impacts are addressed. Human rights due diligence can be included within broader
enterprise risk management systems provided that it goes beyond simply identifying and
managing material risks to the enterprise itself to include the risks to rights-holders. It is an
on-going exercise, recognising that human rights risks may change over time as the
enterprise’s operations and operating context evolve...26
Failure to engage in meaningful consultation with all affected stakeholders
• General Policies Chapter II, Paragraph A.14: Enterprises should engage with relevant
stakeholders in order to provide meaningful opportunities for their views to be taken into
account in relation to planning and decision making for projects and other activities that may
significantly impact local communities.
Relevant Commentary: Stakeholder engagement involves interactive processes of
engagement with relevant stakeholders, through, for example, meetings, hearings, or
consultation proceedings. Effective stakeholder engagement is characterized by two-way
communication and depends on the good faith of the participants on both sides. This
engagement can be particularly helpful in the planning and decision-making of projects or
other activities involving, for example, the intensive use of land or water, which could
significantly affect local communities.27
Failure to identify the full scope and severity of potential human rights impacts
• General Policies Chapter II, Paragraphs A.11: Avoid causing or contributing to adverse impacts
on matters covered by the Guidelines, through their own activities, and address such impacts
when they occur.
• Human Rights Chapter IV, Paragraph 2: Within the context of their own activities, avoid causing
or contributing to adverse human rights impacts and address such impacts when they occur.
Relevant Commentary: Paragraph 2 recommends that enterprises avoid causing or
contributing to adverse human rights impacts through their own activities and address such
impacts when they occur. ‘Activities’ can include both actions and omissions. Where an
enterprise causes or may cause an adverse human rights impact, it should take the
necessary steps to cease or prevent the impact. Where an enterprise contributes or may
contribute to such an impact, it should take the necessary steps to cease or prevent its
contribution and use its leverage to mitigate any remaining impact to the greatest extent
possible. Leverage is considered to exist where the enterprise has the ability to effect
change in the practices of an entity that cause adverse human rights impacts.28
3. Failure to carry out environmental due diligence, including consulting with and
informing affected communities
POSCO has not completed comprehensive environmental due diligence that assesses all project
components and their impacts (in violation of General Policies Chapter, Paragraph A. 10 and
Environment Chapter VI, Paragraph 3). In addition, POSCO has not engaged with all relevant
stakeholders during the environmental assessment process (in violation of General Policies
17
Chapter II, Paragraph A.14) thereby rendering the company’s existing environmental studies
incomplete and inadequate. Consequently, POSCO will be incapable of preventing or mitigating
significant adverse impacts on thousands of people and the environment should its proposed
project proceed (in violation of General Policies Chapter, Paragraph A.11). Furthermore, POSCO has
not provided the public with adequate, measurable and verifiable information about potential
environmental impacts of its proposed project (in violation of Environment Chapter VI,
Paragraph 2a).
As noted earlier, POSCO intends to build and operate a 12 MTPA integrated steelworks plant, which
will include a captive power plant and a captive minor port. POSCO only completed Rapid EIA for
Phase I of the steelworks plant and captive minor port (evaluating the impacts at the 4 MTPA
capacities) even though these components are planned for 12 MTPA capacity.
The Environment Protection Act 1986, the main legislation governing EIAs, requires the completion
of a comprehensive EIA based on data collected for one year. A Rapid EIA is based on data
collected for one season, and shows whether a Comprehensive EIA is necessary.29 The Rapid EIA
for the steel plant was based on data collected for only for two (2) months (not an entire season).
The Rapid EIA for the captive minor port was based on the data collected from September to
November, which is the monsoon period, during which time (according to the Environment
(Protection) Act 1986) conducting an EIA is prohibited.
The Rapid EIA did not include the planned township, transportation or other related infrastructure.
It also did not examine a number of other critically important environmental issues, including the
planned water diversion from the Jobra Barrage of Mahanadi River30; impacts to water resources
and marine fisheries during construction; the plant’s water usage once operational and how this
might affect water availability or usability in the region; coastal erosion and pollution to ecologically
sensitive estuary and coastal sand dunes; and impacts to Paradip Port, which is already a heavily
polluted area.
The Meena Gupta Majority Report concluded:
The Committee strongly feels that there have been many serious lapses and illegalities in the
EIA process. The EIA for such a megaproject is rapid, based on one-season data without taking
into account all the components of the project like the township project, water project, railroad
and transport facilities etc. Moreover it is limited only to Phase I of the project. There are
serious violations in the public hearing process where many communities have been left out.
The imposition of additional conditions to the existing [environmental clearances] will not at all
remedy the lapses and illegalities. The Committee therefore strongly recommends that the
Environmental Clearance given by the MoEF dated 15.5.2007 for minor port and 19.7.2007 for
the steel plant should be immediately revoked.31
Moreover, POSCO’s one public hearing on 15 April 2007 about its environmental due diligence was
entirely inadequate. In this regard, the Meena Gupta Majority Report noted:
The Committee is of the firm view that the Public Hearing held on 15.4.2007 was not in
compliance with the rules. The authorities failed to provide copies of the EIA to panchayats; all
the project affected persons were not given opportunity to be heard. It was held in Kujanga
about 15 km away from the affected villages. During the hearing, many people complained that
18
because of the prohibitive distance, many villagers could not travel to participate in the Public
Hearing. The committee was informed that there was presence of a strong police force at the
venue of the public hearing a day prior to the hearing itself. This served as a deterrent to free
participation by local villagers, who were opposing the project. Other project affected people
like traditional fishing community and farmers were not covered by the public hearing. The
social impact of the project was also not discussed. Project proponent has failed to answer all
the objections raised during the public hearing. The EAC has failed to apply its mind to the
objections raised by various authorities and the public and have also failed to consider the
available material on record. The EAC has also failed to record any reasons in respect of
accepting or rejecting the objections raised but instead gave clearance. Such mechanical
clearance makes a mockery of rule of law and procedural safeguards.32
In addition, the Meena Gupta Majority Report also found serious issues with clearances given to
POSCO for its Coastal Zone Management Plan. The issues raised by the majority members include
maps that do not accurately show the demarcation of the Coastal Regulation Zone (CRZ)33 and are
also inconsistent with maps by the Orissa Space Application Centre; a recommendation to establish
a coal/ore and slag yard in areas that clearly violate CRZ regulations; plans to disrupt the natural
flow of the Jatadharmohan creek that also violates CRZ regulations; and the failure to request
clearance for wastewater treatment plans. Despite the above issues, POSCO was granted clearance
by the Government. However, the majority Meena Gupta Committee members concluded:
...POSCO-India Pvt. Ltd has not been able to address all the issues relating to [Coastal Regulation
Zone] notification. There are a number of serious lapses and violations, including suppression
of facts. The environment clearance given by the MoEF vide letter dated 15 May 2007 should
therefore be revoked forthwith.34
On 30 March 2012, the National Green Tribunal (NGT) suspended POSCO’s final 2011
environmental clearance.35 We refer you to Appendix A, “National Green Tribunal, Appeal
No. 8/2011, 30 March 2012 between Prafulla Samantray and Biranchi Samantray [vs.] Union of
India, Orissa State Pollution Control Board and M/S POSCO India Pvt. Ltd”. In its Order, the NGT
noted:
…A project of this magnitude particularly in partnership with a foreign country has been dealt
with casually, without there being any comprehensive scientific data regarding the possible
environmental impacts. No meticulous scientific study was made on each and every aspect of
the matter leaving lingering and threatening environmental and ecological doubts un-
answered…36
The NGT’s Order examined the question of whether POSCO should have completed a
comprehensive and integrated EIA report of various project components:
7.1 Need for Comprehensive and integrated EIA report of various project components. The
majority members of the Review Committee have pointed out that for a project of this
magnitude, a Comprehensive and integrated EIA report was required based on at least one full
year base line data at the time of conduct of PH and subsequent appraisal by the EACs and the
same argument has been put forward by the appellant. Whereas, the Respondents have
submitted that at relevant point of time and as per the procedure, Comprehensive and
integrated EIA report was not mandatory, it was only that as a part of own responsibility that
19
Respondent No. 3 prepared a Comprehensive and integrated EIA report engaging agencies of
repute at a later date. The issue of integrated EIA report for various components of the project
raised by the Review Committee and the appellants needs a consideration. Of course, as per
the provisions, the proponent was required to approach different EACs for steel plant and
captive minor port and accordingly, separate rapid EIAs were furnished. The available records
also indicate that respective EACs were well aware of the other component. We have gone
through the various provisions in the EIA requirement procedure and the material placed on
record, undoubtedly, at the time of [Public Hearing] and subsequent appraisal by the
[Environmental Advisory Committees], Comprehensive and integrated EIA report was not
warranted, however, it would have been prudent to have this report at the very beginning stage
itself to avoid all the confusion and delays especially considering the magnitude of the project
and its likely impact on various environmental attributes in the ecologically sensitive area. In
this direction, it would be prudent to note that a similar observation has also been made by
Ms. Meena Gupta in her review report. Similar apprehensions have also been raised by the
majority members of the Review Committee that considering the nature and extent of project,
it was necessary to have a comprehensive and integrated EIA rather than rapid fragmented
EIA...37
As noted above, The NGT ordered the Ministry of Environment and Forests (MoEF) to carry out a
“fresh review” by a newly-formed committee of “subject matter specialists for better appreciation
of environmental issues”. POSCO, for its part, “shall be asked to furnish relevant details required
for the said review by the newly constituted committee to recommend specific conditions to be
attached/revised in the [environmental clearances] granted by MOEF”.38 (Appendix A)
While the NGT determined POSCO met its minimum legal obligations with respect to the EIA
process, the NGT’s Order affirms the fact POSCO has not conducted the level of environmental
due diligence needed for a project of its magnitude and anticipated environmental impacts. In
this regard, we contend POSCO has also failed to “honour” the Guidelines to the fullest extent
possible by failing to complete comprehensive due diligence that assesses all of the project’s
components.
It is also important to reiterate that POSCO has not provided the public with adequate,
measurable and verifiable information about potential environmental impacts; nor has it
engaged in meaningful consultation with affected communities. POSCO’s inadequate and
substandard environmental due diligence demonstrates it not only lacks the necessary
competency to prevent or minimize environmental damage should its project proceed, but also
demonstrates a lack of good faith on the part of the company in dealing with affected people
who will be impacted by its project. We therefore allege POSCO is in violation of the following
Guidelines:
Failure to conduct comprehensive environmental due diligence
• General Policies Chapter II, Paragraphs A.10. Enterprises should carry out risk-based due
diligence, for example by incorporating it into their enterprise risk management systems, to
identify, prevent and mitigate actual and potential adverse impacts as described in paragraphs
11 and 12, and account for how these impacts are addressed. The nature and extent of due
diligence depend on the circumstances of a particular situation.
Relevant Commentary: For the purposes of the Guidelines, due diligence is understood as
20
the process through which enterprises can identify, prevent, mitigate and account for how
they address their actual and potential adverse impacts as an integral part of business
decision-making and risk management systems. Due diligence can be included within
broader enterprise risk management systems, provided that it goes beyond simply
identifying and managing material risks to the enterprise itself, to include the risks of
adverse impacts related to matters covered by the Guidelines. Potential impacts are to be
addressed through prevention or mitigation, while actual impacts are to be addressed
through remediation…39
• Environment Chapter VI, Paragraph 3: Assess, and address in decision-making, the foreseeable
environmental, health, and safety-related impacts associated with the processes, goods and
services of the enterprise over their full life cycle with a view to avoiding or, when unavoidable,
mitigating them. Where these proposed activities may have significant environmental, health,
or safety impacts, and where they are subject to a decision of a competent authority, prepare
an appropriate environmental impact assessment.
Failure to engage with all relevant stakeholders during the environmental assessment process
• General Policies Chapter II, Paragraph A.14: Enterprises should engage with relevant
stakeholders in order to provide meaningful opportunities for their views to be taken into
account in relation to planning and decision making for projects and other activities that may
significantly impact local communities.
Relevant Commentary: Stakeholder engagement involves interactive processes of
engagement with relevant stakeholders, through, for example, meetings, hearings, or
consultation proceedings. Effective stakeholder engagement is characterized by two-way
communication and depends on the good faith of the participants on both sides. This
engagement can be particularly helpful in the planning and decision-making of projects or
other activities involving, for example, the intensive use of land or water, which could
significantly affect local communities.40
Failure to identify the full scope and severity of potential environmental impacts
• General Policies Chapter II, Paragraphs A.11: Avoid causing or contributing to adverse impacts
on matters covered by the Guidelines, through their own activities, and address such impacts
when they occur.
Failure to provide the public with adequate, measurable and verifiable information about
potential environmental impact
• Environment Chapter VI, Paragraph 2a: Enterprises should… provide the public and workers
with adequate, measurable and verifiable (where applicable) and timely information on the
potential environment, health and safety impacts of the activities of the enterprise, which could
include reporting on progress in improving environmental performance.
OTHER PROCEEDINGS
The issues raised in this Specific Instance primarily relate to POSCO’s failure to carry out
comprehensive human rights and environmental due diligence, including meaningful consultation
21
with all affected communities to identify the full scope and severity of potential human rights and
environmental impacts. Therefore, none of the following proceedings should prevent or delay
consideration of this Specific Instance, as further explained below.
• Orissa High Court regarding the Forest Rights Act 2006 – As noted above, the original
petition regarding the Odisha State Governments’ failure to implement the FRA is pending.
Nevertheless POSCO has a responsibility to conduct comprehensive human rights due
diligence in accordance with the Guidelines and the UN’s “Protect, Respect and Remedy”
framework prior to commencing its project.
• National Green Tribunal proceedings - As noted above, on 30 March 2012, the National
Green Tribunal (NGT) suspended POSCO’s final 2011 environmental clearance.41 The NGT’s
Order affirms the fact POSCO has not conducted the level of environmental due diligence
needed for a project of its magnitude and environmental impacts. The NGT proceedings
have concluded.
• Orissa High Court regarding tree felling - A writ petition has been filed at the Orissa High
Court by local community members in response to tree felling carried out by the State
Government on POSCO’s behalf in September 2011 even though a valid Memorandum of
Understanding did not exist between the parties. According to the petitioners,
approximately 50,000 trees have been cut down in proposed steel plant area. Another
300,000 Jhaun, Casuarina and Tamarisk trees that protect the coast from wind and sea
waves are slated for removal. The petitioners have argued that loss of trees will impact the
ecological balance and make communities significantly more vulnerable to devastating
cyclones, which are recurrent in the region. The petitioners noted that in 1999 when a
super cyclone struck, there were no casualties in the villages protected by the trees. While
these proceedings are not directly relevant to the allegations contained within this Specific
Instance in so far as the Odisha State Government is the responsible party, the
environmental implications of deforestation and increased cyclone risk to local
communities should be addressed in POSCO’s environmental due diligence.
• National Human Rights Commission42 - The Commission has made inquiries into some of the
acts of repression and violence against community members. In addition, the Commission
held a hearing on the problems faced by the Scheduled Castes in April 2012. The NHRC is
not currently pursuing civil action at this time, but rather the Commission is monitoring
developments related to POSCO project. In addition, the Commission has limited authority
to make recommendations to companies and therefore cannot recommend or instruct
POSCO to conduct human rights due diligence. We refer you to Appendix H, “NHRC team
meets villagers at Posco site”.
• Supreme Court regarding mining concession rights - The Odisha State Government leased
the Khandhar mines located 500 km from the proposed plant site in the Sundargarh District
to POSCO. However, the Odisha High Court has cancelled the lease while a petition filed by
Geo-min Minerals, a mining company that had also applied for lease, is pending. The Odisha
State Government has appealed the lease cancellation to the Supreme Court. The nature of
this legal action – namely whether POSCO will have rights to the Khandhar mines – is
beyond the scope of this Specific Instance.
22
COMPLAINANTS’ REQUESTS OF NCPS
We request the Korean, Dutch and Norwegian NCPs to facilitate mediation between all parties to
this Specific Instance to address POSCO’s breaches to the General Policies, Disclosure, Human
Rights and Environment Chapters of the Guidelines. We request all three NCPs to cooperate to the
fullest extent possible, and ensure a consistent handling of this Specific Instance in the interest of
functional equivalence.
As institutional investors, ABP/APG and GPFG should, consistent with their stated policy
commitments to corporate social responsibility, urge POSCO to address the breaches cited in this
complaint. Specifically, we request ABP/APG, and GPFG to elaborate on the steps they will take to
prevent, through their investments in POSCO, contributing to adverse impacts, to ensure
compliance with the Guidelines and their own ESG criteria.
The Guidelines state:
If the enterprise identifies a risk of contributing to an adverse impact, then it should take
the necessary steps to cease or prevent its contribution and use its leverage to mitigate any
remaining impacts to the greatest extent possible.43
The Guidelines furthermore state:
Appropriate responses with regard to the business relationship may include continuation of
the relationship with a supplier - or business relationship - throughout the course of risk
mitigation efforts; temporary suspension of the relationship while pursuing ongoing risk
mitigation; or, as a last resort, disengagement with the supplier either after failed attempts
at mitigation, or where the enterprise deems mitigation not feasible, or because of the
severity of the adverse impact.44
First and foremost, ABP/APG and GPFG should engage in a dialogue with the affected communities
and their representatives. We request ABP/APG and GPFG to develop, in consultation with the
complainants, a clear and credible mitigation strategy that includes:
1) steps to exercise their leverage;
2) if necessary, steps to increase their leverage; and
3) the public disclosure of minimum criteria for the continuation of the investment
In addition, given the magnitude of the potential adverse impacts and the many years of
controversy between POSCO and affected communities, we ask the NCPs carry out or commission
an independent fact finding mission that examines all the issues raised in this Specific Instance prior
to convening discussions. The NCPs should also be aware of the fact that there is intense local
opposition to the POSCO project, so we request all options, including the cancelation, relocation
and significant down-sizing of the project, be discussed during mediation.
If mediation fails, we request the NCPs to jointly make an assessment of the facts and
circumstances in a final statement, including whether the allegations contained herein constitute
breaches of the Guidelines. In order to comply with the Guidelines, we believe POSCO should:
23
1) Obtain the free, prior and informed consent from all members of Scheduled Tribes and
OTFDs in accordance with the FRA as a central component of comprehensive human rights
and environmental due diligence processes.
2) Demonstrate compliance to statutory rights by asking the Odisha State Government to
ensure informed consent of the gram sabhas (village counsels) are obtained in accordance
with the FRA.
3) Make a good faith demonstration of its intentions to ensure that the FRA is implemented,
both in letter and spirit, by publicly requesting that the State Government of Orissa halt
evictions and deforestation.
4) Conduct comprehensive human rights due diligence in a manner that is consistent with the
United Nation’s “Protect, Respect, Remedy” Framework on business and human rights. The
human rights assessment should include meaningful consultation with all affected
communities in order to identify the full scope and severity of potential human rights
impacts.
5) Complete a new Comprehensive EIA that takes into consideration the findings of the report
by majority members of the MoEF committee headed by Meena Gupta, the concerns and
issues raised by the local people at the public hearing on 15 April 2007 and the National
Green Tribunal’s March 2012 ruling. The EIA should be based on data collected over 1-year
consistent with the Environment (Protection) Act 1986 requirements.
6) Engage in meaningful stakeholder consultation with all affected communities to identify the
full scope and severity of potential human rights, social and environmental impacts.
7) Provide specific and detailed information on the conditions attached to the clearances for
the steel plant and port granted by the Indian government and the status of implementation
of such conditions.
8) Adopt and publish a policy commitment affirming POSCO is committed to operating in
accordance with international human rights best practices as reflected in the UN’s “Protect,
Respect and Remedy Framework” and the OECD Guidelines for Multinational Enterprises.
9) Issue a public statement that states POSCO opposes and condemns the use of force or
repression under any circumstances.
We look forward to a written confirmation of receipt of this complaint, and appreciate your
assistance and leadership in resolving the issues raised herein.
Please send all correspondence to Prafulla Samantara at [email protected].
Sincerely,
Prafulla Samantara
Lok Shakti Abhiyan
24
LIST OF APPENDICES
Appendix A
“National Green Tribunal, Appeal No. 8/2011, 30 March 2012 between Prafulla Samantray and
Biranchi Samantray [vs.] Union of India, Orissa State Pollution Control Board and M/S POSCO India
Pvt. Ltd”.
Appendix B (“Saxena Committee Report”)
“MoEF/MoTA Committee on Forest Rights Act: Report of visit to Jagatsinghpur (site of proposed
POSCO project), Orissa, 23-24 July 2010”.
Appendix C (“Meena Gupta Report”)
“Summary Report of the Committee Constituted to Investigate into the proposal submitted by
POSCO India Pvt. Limited for establishment of an Integrated Steel Plant and Captive Port in
Jagatsinghpur District, Orissa, October 18, 2010”. To download the full report (261 pages):
http://moef.nic.in/downloads/public-information/report-committee-posco.pdf
Appendix D
“National Commission for Protection of Child Rights, Report following visit to Jagatsinghphur
District, Odisha, 3-5 July 2011 to assess the safety and security of children in the POSCO area,
22 Jul 2011”.
Appendix E
People’s Union for Civil Liberties’ press release concerning the arrest and treatment of Mr. Sahoo
Appendix F
“Attack on people of Dinkia, Gadakunjanga & Nuagaon (anti-POSCO campaigners) by goons,
supposedly hired by POSCO contractors on 26th Sep 2011”.
Appendix G
“POSCO’s response to concerns about its proposed steel project in Jagatsingphur district, Odisha,
India”, submitted to the Business & Human Rights Resource Centre, 1 Sep 2011.
Appendix H
“NHRC team meets villagers at Posco site”, The Times of India, 11 Apr 2012.
25
VIDEOS
“Peoples Resistance to Posco”
http://www.youtube.com/watch?v=RhcZ2ZmApys&feature=related
“Anti Posco Leader Illegally Chained to Hospital Bed”
http://www.youtube.com/watch?v=px3d52vTEuM&feature=relmfu
“The secret of Dhinkia & other villages opposing POSCO steel project”
http://www.youtube.com/watch?v=sV6dWDhX4Lw&feature=related
“NO POSCO”
http://www.youtube.com/watch?v=ar4L2SJRjCA&feature=related
26
ACRONYMS
CRZ .................Coastal Regulation Zone
EIA ..................environmental impact assessment
FRA .................Forest Rights Act of 2006
MoEF ..............Ministry of Environment and Forests
MoTA ..............Ministry of Tribal Affairs
MTPA ..............million tons per annum
NCP .................National Contact Point for the OECD Guidelines for Multinational Enterprises
NGT ................National Green Tribunal
NHRC ..............National Human Rights Commission
OTFDs .............Other Traditional Forest Dwellers
PPSS ................Committee for resistance against POSCO
UN ..................United Nations
XIMB ...............Xavier Institute of Labour Management
27
ENDNOTES
1 KTNC WATCH is composed of APIL (Advocates for Public Interests Law, [email protected]), CFA (Corporate For All,
[email protected]), Energy & Climate Policy Institute ([email protected]), GONG-GAM Korean Public Interest Lawyers’
Group ([email protected]), KCTU (Korean Confederation of Trade Unions, [email protected]), KHIS (Korean House for
International Solidarity, [email protected]), KPLH(Korean Lawyers for Public Interest and Human Rights,
[email protected]), National Association of Professors for Democratic Society ([email protected]), and PSSP
(People’s Solidarity for Social Progress, [email protected]). 2 Milieudefensie/FOE-NL, Niza/Action Aid, Transnational Institute, Clean Clothes Campaign, SOMO and Both Ends. 3 “Orissa” is officially spelled “Odisha”. Both spellings are used interchangeably in this Specific Instance. 4 “CPP means the power plants commissioned by the industries for their self-consumption”. (Source: Captive Power
Plants: Case Study of Gujarat, India, P. 6: http://iis-db.stanford.edu/pubs/20454/wp22_cpp_5mar04.pdf) 5 Similar to a captive power plant, a captive minor port is built and operated by a company for its own purposes.
6 Source: http://posco-india.com/website/project/details.htm
7 “II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 7, Para. 1.
8 Source: http://posco-india.com/website/project/benefits.htm
9 http://www.orissa.gov.in/stsc/FOREST_RIGHT_ACT/FRA_English.pdf
10 http://www.indiaenvironmentportal.org.in/files/file/final_order.pdf
11 “NGT Appeal No. 8/2011, 30 March 2012 between Prafulla Samantray and Biranchi Samantray [vs.] Union of India,
Orissa State Pollution Control Board and M/S POSCO India Pvt. Ltd”, Pgs. 31-32, Paras. 8.1 – 8.9 (8.8 has been omitted). 12
“POSCO submits revised land plan for 8 MTPA steel plant”. Business Standard (India), 5 Jul 2012:
http://www.business-standard.com/india/news/posco-submits-revised-land-plan-for-8-mtpa-steel-plant/479403/ 13
“POSCO submits revised land plan for 8 MTPA steel plant”. Business Standard (India), 5 Jul 2012:
http://www.business-standard.com/india/news/posco-submits-revised-land-plan-for-8-mtpa-steel-plant/479403/ 14
“Odisha government not to acquire private land for Posco project”. The Economic Times (India), 6 Jul 2012:
http://articles.economictimes.indiatimes.com/2012-07-06/news/32566399_1_posco-steel-steel-project-land-for-
posco-project 15
The Indian Express. “MoEF team visits Posco site for green clearance”, 22 Aug 2012:
http://www.indianexpress.com/news/moef-team-visits-posco-site-for-green-clearance/991295/ 16
Abhishek Shanker, “Posco Said to Get Land for $12 Billion India Unit in October”, Bloomberg Businessweek, 6 Sep
2012: http://mobile.businessweek.com/news/2012-09-06/posco-said-to-get-land-for-12-billion-india-unit-in-october 17
“II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 8, Para. 5. 18
“MoEF/MoTA Committee on Forest Rights Act: Report of visit to Jagatsinghpur (site of proposed POSCO project),
Orissa, 23-24 July 2010”, Pg. 4. 19
“II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 10, Paras 15-16. 20
“Odisha government not to acquire private land for Posco project”. The Economic Times (India), 6 Jul 2012:
http://articles.economictimes.indiatimes.com/2012-07-06/news/32566399_1_posco-steel-steel-project-land-for-
posco-project 21
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 31, Para. 37. 22
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 32, Para. 38. 23
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 32, Para. 40. 24
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 33, Para. 42. 25
OECD Guidelines for MNEs, Commentary on General Policies, Pg. 23, Para. 14. 26
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 34, Para. 45. 27
OECD Guidelines for MNEs, Commentary on General Policies, Pg. 25, Para. 25. 28
OECD Guidelines for MNEs, Commentary on Human Rights, Pg. 33, Para. 42. 29
“The difference between Comprehensive EIA and Rapid EIA is in the time-scale of the data supplied. Rapid EIA is for
speedier appraisal process. While both types of EIA require inclusion/coverage of all significant environmental impacts
and their mitigation, Rapid EIA achieves this through the collection of one season (other than monsoon) data only to
reduce the time required. This is acceptable if it does not compromise on the quality of decision-making. The review of
Rapid EIA submissions will show whether a comprehensive EIA is warranted or not”. (Source: MoEF -
http://envfor.nic.in/divisions/iass/eia/Chapter1.htm)
28
30 The Jobra Barrage of Mahanadi River provides drinking and irrigation water to the cities of Cuttack and
Bhubaneshwar and districts of Cuttack, Jagatsinghpur, Khurda and Kendrapada. 31
“II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 14, Para. 32. 32
“II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 13-14, Para. 30. 33
The Coastal Regulation Zone refers to an area designated according to High Tide Lines and Low Tide Lines as provided
by the Environment Protection Act 1986. Certain actions such as the establishment or expansion of industrial facilities
within the CRZ area are very restricted. 34
“II. Report Submitted By Dr. Urmila Pingle, Dr. Devendra, Pandey, Dr. V. Suresh”, Pg. 16, Para. 39. 35
http://www.indiaenvironmentportal.org.in/files/file/final_order.pdf 36
NGT Final Order, Page 22, Section 7. 37
NGT Final Order, Page 23-24, Section 7.1. 38
“NGT Appeal No. 8/2011, 30 March 2012 between Prafulla Samantray and Biranchi Samantray [vs.] Union of India,
Orissa State Pollution Control Board and M/S POSCO India Pvt. Ltd”, Pgs. 31-32, Paras. 8.1 – 8.9 (8.8 has been omitted). 39
OECD Guidelines for MNEs, Commentary on General Policies, Pg. 23, Para. 14. 40
OECD Guidelines for MNEs, Commentary on General Policies, p. 25, Para. 25. 41
http://www.indiaenvironmentportal.org.in/files/file/final_order.pdf 42
The NHRC has broad powers to investigate alleged incidents of human rights abuse, including taking civil action in
courts. The NHRC also often undertakes field investigations. We refer you to the NHRC’s Frequently Asked Questions
portion of its website for further information about the Commission’s activities: http://nhrc.nic.in/ 43
OECD Guidelines for MNEs, Commentary on General Policies, Pg. 24, Para. 19. 44
OECD Guidelines for MNEs, Commentary, on General Policies, Pg. 25, Para. 22.
